India Inc's profit share in the country's GDP at 15-year low in 2018

Since 2013, net profit for top 500 companies has remained in the range between Rs 4 trillion and Rs 4.8 trillion despite steady growth in the nominal GDP

India Inc’s profit share in the country’s GDP has hit a 15-year low. The corporate profit-to-GDP ratio for 2018 stood at just 2.8 per cent, the lowest since 2003. The share is down to a third compared to the peak of 7.8 per cent a decade ago and is also below the 20-year average of 4.4 per cent, an analysis by domestic brokerage Motilal Oswal Securities shows.  

“The continued soft patch in earnings over the last decade has resulted in steady deterioration in the corporate profit-to-GDP ratio,” it says. 

Since 2013, net profit for top 500 companies has remained in the range